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Demotion

(Querist) 03 March 2012 This query is : Resolved 
Dear Members,
I have worked in MNC pharma company as Manager for 4 yrs.Due to some sales performance issue I had been demoted by company to lower post through a letter without following any legal process & certain benefits were withdrawn.I have neither given any written request for demotion nor I have sent any acceptance letter but I have started working at demoted post.There is no clause of sales in the appointment letter.No certified standing order is available with company.Pl.guide on following-
1- Is demotion illegal?
2- Is it violation of Art.311 of constitution & is art 311 applicable to me.
3- How can I file case against company & where?
Pl help.
Regards,
Deepak Nair (Expert) 03 March 2012
The practice of demotion for underperformance is not at all illegal.

Art.311 of constitution is applicable to central government employees only and not to private firms and companies..

You can file the case only if the demotion is on beaseless allegations which cannot be proved.
Guest (Expert) 03 March 2012
Question arises, what were the original terms of appointment in your appointment letter without the information of which it would not be proper to comment on your queries? You may therefore need to check first the terms of your appointment contained in your offer cum appointment letter and come back with the information.

About certified standing instructions, there must be one copy of the same each in the custody of the HR department as well as the recognised union of the company. Even some members of staff may also be having copy of the said order.
anil mishra (Querist) 03 March 2012
Dear Sir,
Appointment letter does not hv any clause on performance/target-achievement. Job was to meet the doctors as Medical Rep. After promotion to Area Manager post no service conditions were changed/given.only promotion letter was given without any fresh conditions.No standing order has been provided by company even when asked.Co.does not hv any recognized union.
Guest (Expert) 03 March 2012
Dear Anil,

This is with reference to your later post.

1) Every arbitrary demotion is illegal if made without giving any opportunity to the employee to defend his cause.

2) Article 311 does not guaranty any security in private employment, as has a direct concerns with the Central and State Government employees.

3) If desired, you would need to file a case in the High Court against your demotion order.
K.S.Srinivas (Expert) 05 March 2012
I agree with the expert Expert : Deepak Nair
V R SHROFF (Expert) 05 March 2012
MNC can do it.

Mr Anil Mishra worked as Manager for 4 yr c MNC, and knows the practice and rules of his employment.
Co can throw out Managers without assigning any reason.

Any step against the Co, and you be prepared for a kick.
you can't succeed, and u know about it, being managing the co for 4 years.

Their bad report can create problem with another employment too.

Probably Co was not satisfied by your performance, or like to replace you with another bright person.

It is business, and you cannot dictation the terms.

V R SHROFF (Expert) 05 March 2012
MNC can do it.

Mr Anil Mishra worked as Manager for 4 yr c MNC, and knows the practice and rules of his employment.
Co can throw out Managers without assigning any reason.
anil mishra (Querist) 05 March 2012
Dhingra Sir, Could you please suggest some steps I should take to file the case in high court & under which section.What should be the way forward.

My company is Ltd company listed in India with 54% share holding with parent company which is US based.
Guest (Expert) 05 March 2012
Simply hire services of an expert advocate in service rules at your place, narrate full facts to him and documentary evidence you have with you that includes your offer cum appointment letter and agreement if any. Rest of the work would be taken care of by your advocate.
Deepak Nair (Expert) 07 March 2012
Yes. go for professional assistance as suggested by Mr.Dhingra.
anil mishra (Querist) 07 March 2012
Dear Dhingra Sir & Nair Sir,
I hv been advised by some lawyers that private company matters can not go to High court directly.For high court one of the party has to be Govt.Labour court can not entertain cases of demotion from Management cadre. I am confused.Pl guide.


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